Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Shareholder Meeting (May 2014)
35 slides from Qcr's shareholder meeting presentation, May 15, 2014
Slide 1: Welcome - 2014 Annual Meeting of Stockholders
HOLDINGS, INC. arelationship driven organization” WELCOME 2014 Annual Meeting of Stockholders - May 14, 2014 James J. Brownson, Chairman
Slide 2: Financial Overview
CR HOLDINGS, INC. arelationship driven organization” Financial Overview Todd Gipple, Executive Vice President Chief Operating Officer Chief Financial Officer
Slide 3: SEC Disclosure
HOLDINGS, INC. airelationship driven organization™ SEC Disclosure Some of the information we will be providing today falls under the guidelines for forward-looking statements as defined by the SEC. As part of these guidelines, we must point out that any statements made during this meeting that discu
Slide 4: Today's Financial Overview
HOLDINGS, INC. airelationship driven organization™ Today’s Financial Overview Review of Net Income and EPS Results for 2009-2013 Recent Stock Price Performance Changes in Market Capitalization A Report Card on our 2013 Entity-Wide Strategic Initiatives
Slide 5: Net Income and EPS Results 2009-2013
[OLDINGS, INC. He ‘aitelationship driven organization” y 2008 2010 2012 2013 {in thousands) Net interest income $50,662 $49,864 ' 357,649 $64,105 Non-interest income 18,847 184 17,462 16.621 25.814 * Non-interest expense (46,937) (48,549) (60,993) (62,259) (64,433)"* Pretax pre-provision 19,272 1672
Slide 6: Recap of 2013 Core Earnings
HOLDINGS, INC. Recap of 2013 “Core” Earnings Reported sore (In thousands) Net interest income $64,105 -—— $64,105 Income before taxes 19,556 Income taxes (4,618) Net income $14,938 “tudes th folowing nwa «) Bargain purchase gain onthe acquston of Community Netina of 1.8 itien 5) Gains on sles of cer
Slide 7: norganiz
norganiz s $17.03 “$13.22 $9.10 ‘$7.14 $19.00 $17.00 $15.00 $13.00 $11.00 $9.00 ~~ $5.00
Slide 8: airelationship driven organization™
airelationship driven organization™ $17.03 SN ™ a wm $9.10 ‘$7.14 $19.00 $17.00 $15.00 $13.00 $11.00 $9.00 -— $7.00
Slide 9: airelationship driven organization™
airelationship driven organization™ isa} i} y a on $13.22 $9.10 $7.14 $19.00 $17.00 $15.00 $13.00 $11.00 $9.00 -— $5.00
Slide 10: Changes in Market Capitalization
Hou INC. airelationship driven organiz $134.3 MM $35.0 $65.0 MM ™@ Stock Price $43.3 MM @ Shares 12/31/11 12/312 12/313
Slide 11: 2013 Strategic Initiatives
[OLDINGS, INC. airelationship driven organization™ 2013 Meet EPS expectations Conversion/Integration of CNB Maintain/improve our Net Interest Margin Increase SBA/USDA gains on loan sales Increase wealth management income Improve liquidity in our stock
Slide 12: 2013: Meet EPS expectations
ue INC. airelationship driven organization™ 2013 Meet EPS expectations Core Earnings increased $700,000, or 6% over 2012. Conversion/Integration of CiagamieuMege (Sloat Off to a stronger start in fy 2014. Maintain/improve our Net Increase SBA/USDA gains on loan sales Increase wealth management incom
Slide 13: 2013: Conversion/Integration of CNB
HOLDINGS, INC. 2013 Meet EPS expectations Conversion/Integration of CNB Maintain/improve our Very successful conversion of DP system in October and Increase SBA/USDA gs divestiture of Mason City & Austin. Integration & cost savings completed. Now focused on growth. Increase wealth manag Improve liqu
Slide 14: 2013: Net Interest Margin
ue INC. airelationship driven organization™ 2013 Meet EPS expectations Conversion/Integration of CNB Maintain/improve our Net Interest Margin Increase SBA/USDA gains o@@Elciit elt trlley Increase wealth manageme! Improve liquidity in our stock getting help from CNB acquisition, correspondent deposit
Slide 15: 2013: SBA/USDA gains on loan sales
[OLDINGS, INC. airelationship driven organization™ 2013 Meet EPS expectations Conversion/Integration of CN Hiller RteRSey.VAUsipyN gains by $1.1 million, Maintain/improve our Net Inte (ilenhxey tar tonee Increase SBA/USDA gains on loan sales Increase wealth management income Improve liquidity in our
Slide 16: 2013: Wealth management income
ue INC. airelationship driven organization™ 2013 Meet EPS expectations Conversion/Integration of CNB Increased Wealth Maintain/improve our Net IntereVEIerecitcielaliaterol ts by $1.5 million, or 26% Increase SBA/USDA gains on IqQgzane Increase wealth management income Improve liquidity in our stock
Slide 17: 2013: Improve liquidity in our stock
ue INC. airelationship driven organization™ 2013 Meet EPS expectations Conversion/Integration of CNB IW Eetalclaluleceuemee) Average daily trading volume for 2012 was 3,616 shares. Average laeasccwelsyViekBy daily trading volume for 2013 was 4,137 shares. Thus far in 2014 Maeaceecaniceliiamitels dai
Slide 18: 2013: Efficiency ratio and capital initiatives
[OLDINGS, INC. airelationship driven organization™ 2013 Drive down our efficiency ratio Conversion of Series E preferred stock into common stoc Restructure holding company financing Continue to redeem Small Business Lending Preferred Stock
Slide 19: 2013: Drive down our efficiency ratio
HOLDING i airelationship driven organization™ 2013 * Drive down our efficiency ratio * Conversion of Series E cuaiadteltelsressteh mnie) common stock 2013. Expect improve ts here as we push toward our + Restructure holding com (Eig uuERUUZGINeEIS * Continue to redeem Small Business Lending Preferred
Slide 20: 2013: Conversion of Series E preferred stock
HOLDINGS, INC. airelationship driven organization™ 2013 Drive down our efficiency ratio Conversion of Series E preferred stock into common stock Converted on December 23, Itccisele tele mareleliatemeels 2013. Eliminated $1,750,000 in annual dividends. Increased Continue to redeem Srrgietayetle)(mero
Slide 21: 2013: Restructure holding company financing
HOLDINGS, INC. airelationship driven organization™ 2013 Drive down our efficiency ratio Conversion of Series E preferred stock into common stock Restructure holding company financing Continue to redeem SmallKeteyrnye) {eic=te Min ACke a id maar) a= Preferred Stock to come as we deepen our relationsh
Slide 22: 2013: Redeem Small Business Lending Preferred Stock
[OLDINGS, INC. airelationship driven organization™ 2013 Drive down our efficiency ratio Conversion of Series E preferred stock into common stoc Restructure holding company financing Continue to redeem Small Business Lending Preferred Stock Restarted redemptions in 2014 wit million in Q1 2014. Planni
Slide 23: Recap of 2013 Accomplishments & Focus Areas for 2014
CR HOLDINGS, INC. arelationship driven organization” Recap of 2013 Accomplishments & Focus Areas for 2014 Douglas M. Hultquist, President and Chief Executive Officer
Slide 24: Agenda: CNB transaction, stock metrics, capital plan, 2014 focus
HOLDINGS, INC. airelationship driven organization™ Recap of Community National Bank Transaction Year-End Stock Metrics Our Strategic Advantage Our Capital Plan Focus Areas for 2014
Slide 25: Corporate Overview: Community National Bank
HOLDINGS, INC. a relationship driven organi Corporate Overview Community National Bank Founded in 1997 nesdeterer da in Waterloo, IA Acquired by QCRH ({COMMUNITY ee $277 Million in assets $ 246 Million in deposits $191 Million in loans 8 Facilities ‘Waterloo, IA (2) Cedar Falls, IA (2) Mason City, 1
Slide 26: Year End Stock Metrics
Year End Stock Metrics $17.00 -e-TBViShare wlo AOC! $15.00 —*-Stock Price $13.00 —e-TBViShare $11.00 $9.00 $7.00 2009 2010 2011 2012 2013 Diluted EPS ($0.46) $0.53 $0.92 $1.85 $2.08 Price/TBV 57.18% 77.39% 119.17% Price/Earnings 9.78x 7.07x 8.00x
Slide 27: Strategic Advantages
HOLDINGS, INC. a relationship driven organi Strategic Advantages local decisions, local solution centralized and efficient manner Credit quality better than peers Historic growth better than peers Yealth Management, SBA/USDA lending, and m2 Leasing
Slide 28: Key Differentiator: Group Operations
Hol iS, INC. Key Differentiator: G roup Operations ¢ Accounting — John Oakes * Customer Service/Item Processing — Kathy Francque Beth Easterla d John Rodriguez Jill ¢ Information Technology — Michael Wyffels and John Rodriguez ¢ Internal Audit — Tim Harding Rand Westlund
Slide 29: Key Differentiator: Correspondent Banking
HOLDINGS, INC. Key Differentiator: Correspondent Banking team. mpetitively ¢ Depth of vradoct offerings: - Loan Participations fekee tock Financing - Credit Card Services - Fed Funds Lines LaSall d Bankers Bank of Illinois. or 8.9% of total loans/leases.
Slide 30: Key Differentiator: Wealth Management
‘arelationship driven organi: Key Differentiator: Wealth Management + As of December 31, 2013: A imately $1.58 Billion in Th d related mpetitively 1 teran team of Wealtl “th 4 * Depth of product offerings: - Financial Planning - Asset Management - Trust Services - Estate Planning -Brokerageand RIA —
Slide 31: Key Differentiator: SBA - USDA Lending
HOLDINGS, INC. Key Differentiator: SBA - USDA Lending SBAL igi for the Fiscal Year Ending 9/30/13 Quad City Bank & Trust - 3rd in the state of ‘olume) - Cedar Rapids Bank & Trust — Ist in the state of Iowa for I ‘olume) - Rockford Bank & Trust - <a in the state of Illinois (dollar volume) th in the
Slide 32: Key Differentiator: m2 Lease Funds, LLC
oo HOLDINGS, INC. aifelationship driven organ Key Differentiator: m2 Lease Funds, LLC EEG. + Very little residual value risk sa Pre-Tax Eamings Net Charge-ffsto Leases 2006 $530 S 875651 014% 2010 $854 S 882,741 1.01% 2012 $109.7 $3,367,182 0.84% wy + Key Niches: = Marine Equipment < Nachiceyastis ‘
Slide 33: Capital Plan
Capital Plan * Continue to redeem SBLF organically. * Continue to grow TCE organically - S 100bps of TCE. “Cc ue to levera common shareholders. gulatory capital guideli 11).
Slide 34: Focus Areas for Improving Shareholder Value in 2014
Ho! iS, INC. Focus Areas for Improving Shareholder Value in 2014 oon Grow loans / Leases Improve liquidity in our stock Grow Wealth Management income Dried Fi { 1 1% ROAA Small Busin s Lendin:
Slide 35: Questions
Tans, .0 oday! Questions